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Home My WebLink About20A - AA - DEVELOPER CONTRIBUTIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 16, 2015 TITLE: RECOGNIZE DEVELOPER CONTRIBUTION AND APPROPRIATE FOR OFF -SITE IMPROVEMENTS TO PUBLIC INFRASTRUCTURE (STRATEGIC PLAN NOS. 3,3C; 3,5) CITY MAffAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ...0• _R ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Recognize a developer contribution from Core Holdings, LLC, in the amount of $60,000 in Fiscal Year 2014 -2015. 2. Approve an appropriation adjustment in Fiscal Year 2014 -2015 transferring $60,000 to the budget line items where expenditures were incurred as follows: a. $26,790 to Select Street Construction Fund b. $12,799 to General Fund c. $10,591 to Water Enterprise Fund d. $7,113 to Sanitation Enterprise Fund e. $2,707 to Sewer Enterprise Fund DISCUSSION In July 2014, the City received a developer contribution from Core Holdings, LLC, in the amount of $60,000, satisfying certain conditions of private development at 601 East Santa Ana Boulevard, to supplement ongoing City construction of off -site improvements in the area. Improvements included demolition and construction of sidewalk, curb and gutter; removal of a tree; street lighting improvements; adjustment of water and sewer pipe placement; and associated street repairs. These improvements are now complete. Staff recommends that Council recognize the developer contribution and appropriate it proportionally to the following funds: Fund Percentage Amount Select Street Construction Fund (sidewalk, curb, gutter) 44.6 26,790 General Fund (street lighting) 21.3 12,799 Water Enterprise Fund (water pipe replacement) 17.7 10,591 Sanitation Enterprise Fund (tree removal) 11.9 7,113 Sewer Enterprise Fund (sewer pipe replacement) 4.5 2,707 100% $60,000 20A -1 Recognize Developer Contribution and Appropriate For Off -Site Improvements to Public Infrastructure June 16, 2015 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), Strategy C (explore opportunities to encourage a business friendly environment within the city through the reduction of non - essential regulatory requirements, improved coordination between agencies for development review and addition of monetary incentives); and, Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT In Fiscal Year 2014 -2015, funds have been deposited in the Select Streets Construction Fund Revenue account (No. 05917002 - 57080). Approval of the appropriation adjustment will transfer $60,000 to the budget line items where expenditures were incurred as follows: Account Amount 05917663 -66220 Traffic Congestion Relief HUT 2013 $26,790 01117630 -62300 Public Works - Street Light Maintenance 12,799 06017641 -62300 Water System Maintenance 10,591 06817643 -62300 Public Works - Street Trees 7,113 05617640 -62300 Sanitary Sewer Service 2,707 TOTAL $60,000 APPROVED AS TO FUNDS AND ACCOUNTS /V /I wu�,I A _ ) Fed savipour Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Management Services Agency FM /MLM /JE Exhibits: 1. Memorandum dated July 17, 2014, re: MCT #29601 2. Agreement dated July 17, 2014 20A -2 ;., ■ I � MCf # 29601 TD: Finance & Man agement Services Agency b° Thursday, July 17, 2014 FROM: Public Works Agency x-,cl`t.t3C« >n ts� SUBJECT: Miscellaneous Cash Transaction All fees are subjectto change at any time and may also be affected by scheduled adjustments on July 1 of each year. The Payee must paythe prevailing rate atthetime payment is made. 'ROJECTNAME: The Roost MASTER ID #2013-107299 'ROJECT ADDRESS: 601 E Santa Ana Blvd, Santa Ana, CA 92701 AP # 388 -301-07 MA App. # Permit # 50103251 ISSUEDTO: CoreHoldingsLLC ADDRESS: 1923 North Westwoo d Avenue Santa Ana, CA 92706 1 Deposit - Neon - Refundable, Develops ConhibAon Comments, 50103251 The Roost Issued By: Chrysostomo,Anderson (Public WorksAgenc 1.0000 Ea 560,000= 360,000,00 059170D257060 TOTAL AMOUNT RECEIVED: $ 60,000,00 NOTES: ' 5095 of the Street Work Permit Fee will be refunded if the permit is canoe Ile d without any work being done. .. Deposits to guarantee o0 -site improvements will be refunded In full after completion of work and street work permit Is signed off by the PM Construction Inspector. Construction is to be completed within 12 months of this receipt or the City will transfer deposited fund to a non-refundable account. Exhibit 1 20A -3 20A -4 AGREEMENT FOR THE PAYMENT OF PUBLIC IMPROVEMENTS THIS AGREEMENT, made and entered into this J-�_ day of -s,) LY 2014 by and between the CITY OF SANTA ANA, a municipal corporation of the State of California ( "City ") and Core Holdings LLC ( "Developer "), RECITALS: A. The Developer proposes to develop The Roost improvements on property located at 601 East Santa Ana Boulevard in the City of Santa Ana (the "Development "). B. As a condition to the Development, the Developer is required by the City to install certain public improvements ( "Improvements "). The City and the Developer wish the City to perform the installation of the Improvements on behalf of the Developer, at the Developer's sole cost and expense, WHEREFORE, in consideration of the foregoing, the parties hereby agree as follows: 1. Developer furnished improvement drawings dated June 27, 2014 to City for approval. City approved drawings with stamp and signature dated July 3, 2014. 2. The estimated cost of the Improvements is $60,000.00 for construction. The Developer shall pay the sum of $60,000.00 to the City. City shall construct improvements; sewer, water, asphalt concrete pavement, double king street light, street tree, sidewalk, curb & gutter, curb ramp and driveway approach, per approved drawings. 3. NOTICE All notices pertaining to this AGREEMENT and all communications from the parties may be made by delivery and said notices or communications in person or through the U.S. Mail, first class, certified, return receipt requested and addressed as follows: To DEVELOPER: Core Holdings LLC 1923 North Westwood Avenue Santa Ana, CA 92706 Attn: Davin Gumm To CITY: City of Santa Ana Public Works Department 20 Civic Center Plaza M -21 P.O. Box 1988 Santa Ana, CA 92702 Attn: City Engineer Written notice is effective five days after mailing to the most current address provided by the parties. Failure by either party to notify the other of a change in mailing address shall not invalidate service by mail to the most current address provided by that party. Personal service of notice Is effective upon delivery. 4. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 6. This Agreement has been executed and delivered in the State of California and the validity, enforceability and interpretation of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. All duties and obligation of the parties created IN 01 20A -5 hereunder are to be performed in Orange County, which shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 6. To the maximum extent allowed by law, the City shall indemnify, defend, reimburse, save and hold harmless Developer from and against all liability, damage, loss, claims, demands, actions, costs and expenses (including but not limited to attorney's fees and disbursements) which arise out of or are connected with, or claimed to arise out of be connected with, the City's construction of the Improvements, including, but not limited to, claims by third parties that the Improvements were constructed in such a way to result in harm to person or property." 7. This agreement may not be modified or amended except in writing signed by the Developer and City. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year last written below. APPROVED AS TO FORM: Sonia R. Carvalho CITY OF SANTA ANA A municipal corporation of the State of California "tort I Wk cu, AEdwin i iam" Galvez, P.E. Interim Executive Director Public Works Agency Date: of ;W1 DEVELOPER: t Olr L✓( " .D A I kf C u M N� COUt \In-3kNGS '.LL Date: 3 - I - - 11-1 20A -6